ANR has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
Beneish M-Score -1.06 higher than -2.22, which implies that it might have manipulated its financial results.
The zones of discrimination for M-Score is as such:
An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.
Alpha Natural Resources Inc has a M-score of -1.06 signals that the company is a manipulator.
During the past 13 years, the highest Beneish M-Score of Alpha Natural Resources Inc was -0.58. The lowest was -4.15. And the median was -2.92.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.
The M-Score Variables:
The M-score of Alpha Natural Resources Inc for today is based on a combination of the following eight different indices:
|M||=||-4.84||+||0.92 * DSRI||+||0.528 * GMI||+||0.404 * AQI||+||0.892 * SGI||+||0.115 * DEPI|
|=||-4.84||+||0.92 * 1.2354||+||0.528 * 4.851||+||0.404 * 0.91||+||0.892 * 0.7424||+||0.115 * 1.0256|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.1194||+||4.679 * -0.1081||-||0.327 * 1.1094|
|This Year (Mar14) TTM:||Last Year (Mar13) TTM:|
|Accounts Receivable was $369 Mil.|
Revenue was 1111.773 + 1093.7 + 1191.094 + 1335.123 = $4,732 Mil.
Gross Profit was 65.793 + 75.75 + -54.53 + 70.629 = $158 Mil.
Total Current Assets was $2,038 Mil.
Total Assets was $11,834 Mil.
Property, Plant and Equipment(Net PPE) was $8,777 Mil.
Depreciation, Depletion and Amortization(DDA) was $898 Mil.
Selling, General & Admin. Expense(SGA) was $157 Mil.
Total Current Liabilities was $1,290 Mil.
Long-Term Debt was $3,366 Mil.
Net Income was -55.698 + -358.788 + -458.241 + -185.681 = $-1,058 Mil.
Non Operating Income was 249.683 + -8.063 + 7.435 + -18.272 = $231 Mil.
Cash Flow from Operations was -53.961 + -69.561 + 111.083 + 2.098 = $-10 Mil.
|Accounts Receivable was $402 Mil.
Revenue was 1333.591 + 1558.353 + 1633.809 + 1848.109 = $6,374 Mil.
Gross Profit was 157.584 + 467.792 + 206.828 + 197.914 = $1,030 Mil.
Total Current Assets was $2,170 Mil.
Total Assets was $12,847 Mil.
Property, Plant and Equipment(Net PPE) was $9,462 Mil.
Depreciation, Depletion and Amortization(DDA) was $996 Mil.
Selling, General & Admin. Expense(SGA) was $188 Mil.
Total Current Liabilities was $1,280 Mil.
Long-Term Debt was $3,277 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(368.898 / 4731.69)||/||(402.249 / 6373.862)|
2. GMI = Gross Margin Index
Measured as the ratio of gross margin in year t-1 to gross margin in year t.
Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(75.75 / 6373.862)||/||(65.793 / 4731.69)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (2038.041 + 8776.743) / 11833.703)||/||(1 - (2170.015 + 9461.916) / 12847.484)|
4. SGI = Sales Growth Index
Ratio of sales in year t to sales in year t-1.
Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.
5. DEPI = Depreciation Index
Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.
DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
|DEPI||=||(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))||/||(Depreciation_t / (Depreciaton_t + PPE_t))|
|=||(995.697 / (995.697 + 9461.916))||/||(898.182 / (898.182 + 8776.743))|
6. SGAI = Sales, General and Administrative expenses Index
The ratio of SGA expenses in year t relative to year t-1.
SGA expenses index > 1 means that the company is becoming less efficient in generate sales.
|SGAI||=||(SGA_t / Sales_t)||/||(SGA_t-1 /Sales_t-1)|
|=||(156.558 / 4731.69)||/||(188.403 / 6373.862)|
7. LVGI = Leverage Index
The ratio of total debt to total assets in year t relative to yeat t-1.
An LVGI > 1 indicates an increase$sgai= in leverage
|LVGI||=||((LTD_t + CurrentLiabilities_t) / TotalAssets_t)||/||((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)|
|=||((3366.178 + 1290.341) / 11833.703)||/||((3277.03 + 1280.087) / 12847.484)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(-1058.408 - 230.783||-||-10.341)||/||11833.703|
An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.
Alpha Natural Resources Inc has a M-score of -1.06 signals that the company is likely to be a manipulator.
Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations
Alpha Natural Resources Inc Annual Data
Alpha Natural Resources Inc Quarterly Data